Art & Science of Valuation

There is no fixed formula — valuation depends on company stage

Valuation Challenge

Traditional equity metrics (P/E, EBIT, etc.) don't apply neatly to Bitcoin treasuries.

Modern Approach

Investors use a blend of financial data, growth metrics, and philosophy.

Evolution

As treasuries evolve, the way you value them changes.

"Valuation is part science, part philosophy."

Valuation by Stage

Early Stage Treasuries

Focus KPI

Months to Cover

Can they absorb premiums quickly?

Key Risks

  • Execution risk
  • Regulatory hurdles
  • Unproven operations

Investor Approach

Willing to pay higher premiums for rapid BTC accumulation

Risk Profile
High
Investor Type
Aggressive
Established Treasuries

Focus KPI

BTC Yield & Premium to NAV

Growth efficiency and fair pricing evaluation

Key Risks

  • Moderate overall risk
  • Slower growth
  • But execution proven

Investor Approach

Balanced evaluation of upside vs. stability

Risk Profile
Medium
Investor Type
Balanced
Mega Treasuries

Focus KPI

Downside Risk vs. BTC Yield

Is the scale worth the growth trade-off?

Key Risks

  • Growth stagnation
  • Harder to move the needle
  • Large holdings constraints

Investor Approach

Treat like a blue-chip proxy for Bitcoin exposure

Risk Profile
Low
Investor Type
Conservative
Valuation Continuum Timeline

As treasuries mature, the metrics that matter shift

Early Stage Treasuries

Primary KPI: Months to Cover

Risk: High

Investor: Aggressive

Established Treasuries

Primary KPI: BTC Yield & Premium to NAV

Risk: Medium

Investor: Balanced

Mega Treasuries

Primary KPI: Downside Risk vs. BTC Yield

Risk: Low

Investor: Conservative

Ongoing Innovation in Valuation

Market is still experimenting with frameworks

Bitcoin Yield per Share Ratios

Measuring BTC accumulation efficiency relative to share count

NAV Multiples (mNAV, Fully Diluted)

Various approaches to measuring premium above net asset value

Custom Blended Models

Frameworks combining growth metrics with premium absorption rates

Every few weeks, new presentations and valuation theories emerge.

Current state: exploratory, pioneering, creative

The Art & Science Balance

Valuing Bitcoin treasuries isn't just math — it's an evolving art form

Investors must balance data-driven KPIs with narrative, trust, and philosophy

"No single framework is final — it's a living science shaped by the market."